A deeper understanding of the motivations of construction industry stakeholders can significantly boost the adoption of circular economy practices. The enormous amount of waste generated by the construction sector signals an urgent need for circularity — a sustainable model focused on minimizing waste and enhancing material efficiency through recovery and reuse. In 2018, the United States produced 600 million tons of construction and demolition waste, the European Union 820 million tons, and China generated over 2 billion tons annually.

This significant loss of resources, entrenched in the current industrial model, highlights the linear economy in construction, which follows a “take-make-dispose” approach. In contrast, a circular economy follows the “make-use-reuse” model, providing an opportunity to mitigate environmental impact.

MIT researchers are now exploring what could drive a broad shift toward circularity in the built environment. In a new open-access study, they examine stakeholders' perceptions of circular practices and assess their willingness to invest in them. “This paper acts as an initial endeavor into understanding what the industry may be motivated by, and how integration of stakeholder motivations could lead to greater adoption,” states Juliana Berglund-Brown, lead author and PhD student at MIT’s Department of Architecture.

Examining Stakeholder Perspectives

The study surveyed three stakeholder groups across North America, Europe, and Asia: material suppliers, design and construction teams, and real estate developers. The research team includes Akrisht Pandey ’23, Fabio Duarte, Raquel Ganitsky, Randolph Kirchain, and Siqi Zheng from MIT.

While awareness of reuse practices is growing among stakeholders, circular economy practices have yet to be widely adopted. Several factors, including government regulations and the economic interests of developers, impede broader implementation. The study identifies distinct barriers based on industry role. Design and construction teams cite a lack of client interest and standardized assessment methods as key challenges, while material suppliers point to logistical complexity and supply uncertainty. For real estate developers, the primary concerns are higher costs and structural assessment issues.

However, the study reveals a promising trend: respondents are willing to absorb higher costs. Developers, for example, are open to paying an average of 9.6% more for construction if it results in at least a 52.9% reduction in embodied carbon. All stakeholder groups also favor incentives like tax exemptions to offset cost premiums.

Encouraging Circularity Adoption

The research highlights the need for better communication between design teams and developers and further exploration of practical solutions. “The thing about circularity is that there is opportunity for a lot of value creation, and subsequently profit,” says Berglund-Brown. “If people are motivated by cost, let’s provide a cost incentive, or establish strategies that have one.”

The study also notes that different stakeholders are driven by various factors to adopt circular practices. Net-zero goals are influential for both developers and design teams, with government regulation also being a significant motivator across the board. “The construction industry needs a market driver to embrace circularity,” Berglund-Brown emphasizes. “Be it carrots or sticks, stakeholders require incentives for adoption.”

Policy plays a pivotal role in driving change, as evidenced by the introduction of emission-reduction policies like New York City's Local Law 97 and Boston's Building Emissions Reduction and Disclosure Ordinance. These policies have led to progress in low-operational-carbon building designs and can serve as models for policies aimed at reducing embodied carbon.

Berglund-Brown proposes that municipalities could adopt ordinances requiring building deconstruction, allowing materials to be reused rather than discarded, thus shifting supply chains toward reprocessing materials typically considered “end-of-life.”

Overcoming Implementation Challenges

The study also points out challenges to large-scale circularity implementation, including the risks associated with reusing materials in new buildings and disrupting traditional design practices. “Understanding the best way to motivate transition despite uncertainty is where our work comes in,” says Berglund-Brown. “Beyond that, researchers can continue to do a lot to alleviate risk — like developing standards for reuse.”

Innovations Driving Change

MIT researchers have been at the forefront of innovative construction solutions aimed at facilitating circularity. One example is Pixelframe, a modular concrete system designed for reuse. Developed by Caitlin Mueller’s team at MIT, Pixelframe allows building elements to be disassembled and rebuilt, maintaining material efficiency and versatility. “This can be built today. This is building code-compliant today,” said Mueller during a keynote speech at the MCSC Annual Symposium. “We currently have the potential for high-impact carbon reduction as a compelling alternative to the business-as-usual construction methods we are used to.”

Pixelframe recently received funding from the Massachusetts Clean Energy Center (MassCEC) to advance its commercialization, a crucial step toward integrating such innovations into the circular economy. “It’s MassCEC’s job to make sure that these climate leaders have the resources they need to turn their technologies into successful businesses that make a difference around the world,” said MassCEC CEO Emily Reichart.

Berglund-Brown is also leading exciting work on steel reuse, supported by a recent federal grant from the Environmental Protection Agency. “There is a lot of exciting upcoming work on this topic,” she says. “To any practitioners reading this who are interested in getting involved — please reach out.”

This research is supported by the MIT Climate and Sustainability Consortium.